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BDC directors reiterate commitment to exchange rate stability

By  Benjamin Alade
08 June 2021   |   3:56 am
Bureaux De Change (BDC) Directors have reiterated commitment to stable exchange rate and sound corporate governance practices. This was part of resolutions made at the end of an exclusive meeting of BDC Directors...

ICT Officer, Nigeria Financial Intelligence Unit (NFIU), Obilana Olayiwola(left); Chairman, South West Zone, Association of Bureaux De Change Operators of Nigeria (ABCON), Taiwo Ebenezer; President, Dr. Aminu Gwadabe; Akubo Emmanuel of Compliance Department, NFIU; National Treasurer, ABCON, Gbadamosi Mohammed and Executive Secretary, Cletus Uduma at the commencement of the ABCON nationwide training on Bureaux De Change Operations in Lagos. PHOTO:SUNDAY AKINLOLU

Bureaux De Change (BDC) Directors have reiterated commitment to stable exchange rate and sound corporate governance practices.
This was part of resolutions made at the end of an exclusive meeting of BDC Directors organised by the Association of Bureaux De Change Operators of Nigeria (ABCON) in Lagos.
The BDC directors also expressed support for the proposed ABCON Task Force Committee for the purpose of monitoring compliance by operators.
While observing that the guidelines for BDC operations required that all licensed BDCs operate inside their registered offices, the directors charged ABCON to punish any operator involved in street trading of forex or any activity that contravenes the guidelines of the Central Bank of Nigeria (CBN) for the subsector. 
Further, the directors committed to increased supervision of their operations of their BDCs while ensuring adequate remuneration for staff and prompt rendition of returns to the regulatory authorities.
The directors however stressed the need for the Central Bank of Nigeria (CBN) to increase the sales margin of BDCs stressing that the N2 margin presently allowed by the apex bank is inadequate in view of the operating cost of BDCs as well as the rising inflationary trend in the country.
They also highlighted the need for the CBN to expand the operating scope of BDCs to allow for more business revenue to cover their operating cost.
The resolutions followed presentations by ABCON’s executive council members on the role of directors in ensuring that their organisations operate within the scope of the CBN guidelines for the subsector.
ABCON President, Dr. Aminu Gwadabe, charged the BDC directors to protect the huge money invested in their BDCs by ensuring their staff operate within the approved guidelines of the CBN, saying it has become imperative to protect the BDC business, especially the weekly dollar sale by the CBN.

Noting that total investment in each BDC is about N35 million, he called for increased supervision by directors, to detect and forestall any activity that could lead to loss of such investment.

Listing the expected roles of BDC directors, Chairman South West Zone, ABCON, Taiwo Ebenezer, said that directors should be involved in the day-to-day activities of their BDCs and relate regularly with their staff.

Among other things, he added that BDC directors must know the sources of funds paid into their corporate accounts, while also ensuring weekly operational reports from their staff.

On his part, ABCON National Treasurer, Gbadamosi Mohammed, said it is the duty of directors to educate their members on the ethics of the business as indicated in the CBN guidelines.

He added that the ongoing nationwide ABCON training was informed by the need to ensure that all BDC staff are adequately educated, and the directors should ensure application of lessons from the training by their staff in the day-to-day running of their BDCs.
Also speaking, ABCON Vice President, Azubuike Igbokwe, listed unauthorised transactions for BDcs to include, funds transfer, donations to political parties, funding of importation and funding of terrorism activities.
Noting that the penalty for unauthorised transactions include N5 million fine, exclusion from forex  bidding or revocation of operating licence, he charged the directors to always  validate the BVN of their customers so as to ensure their identities and activities as a way of ensuring their BDCs are not unconsciously or indirectly used for  any of the unauthorised transactions.